SkyWater Posts First Operating Profit After Fab 25 Close
Second-quarter revenue reached $156.4 million as the Austin fab contributed $87.4 million and the company swung to $1.9 million of operating income.
SkyWater Technology (SKYT), a U.S.-based independent semiconductor foundry, reported second-quarter revenue of $156.4 million for the three months ended June 28, 2026, up 165% from $59.1 million a year earlier.
The Austin fab was the inflection point. Wafer Services at SkyWater Texas contributed $87.4 million, versus none in the year-ago quarter, after the Fab 25 acquisition expanded manufacturing capacity. Of that amount, $7.5 million was non-cash revenue from the off-market component of a supply agreement. Cost of revenue rose to $121.2 million, with $69.9 million of the increase tied to Fab 25 operations.
Gross profit was $35.2 million. The company swung to operating income of $1.9 million from an operating loss of $6.5 million. Adjusted EBITDA was $28.7 million, driven primarily by the Fab 25 acquisition, including off-market supply-agreement revenue, and continued expansion in advanced compute.
Legacy SkyWater, the Bloomington, Minnesota, and Kissimmee, Florida, segment, generated $69.0 million of revenue. ATS development was $63.2 million. A $30.0 million increase in the advanced compute industry lifted that line, with smaller gains in consumer and medical, partially offset by a $20.5 million decline in aerospace and defense as two programs went on stop work and are proceeding to termination for convenience in 2026. Legacy SkyWater Wafer Services fell to $4.0 million, primarily because of fewer wafer starts from a key automotive customer. Tools revenue was $1.8 million, reflecting a Florida facility program as it nears test vehicles for fan-out technologies.
Selling, general and administrative expense was $27.6 million. The increase included $5.5 million of Fab 25 operations, $2.5 million of legal expenses and $1.1 million of contract breakage fees related to the IonQ acquisition, plus higher retention-related bonus accruals. Research and development expense was $5.7 million.
Interest expense was $7.0 million. Higher average borrowings under the revolving credit facility followed a capacity increase tied to the prior-year acquisition, and a Tool Financing Loan entered in the second quarter added $1.0 million of interest. Consolidated net loss was $5.2 million. Net loss attributable to SkyWater Technology, Inc. was $6.4 million.
On July 31, 2026, IonQ, Inc. completed the merger under an agreement dated January 25, 2026. Merger Sub 1 merged with and into SkyWater, which survived as a wholly owned subsidiary of IonQ, and then merged with and into Merger Sub 2, surviving as SkyWater Technology, LLC. The mergers did not impact results of operations for the periods presented.
SkyWater operates exclusively in the United States, with fabrication and packaging in Minnesota, Texas and Florida. It positions itself as a domestic manufacturing partner for commercial and government customers that require secure manufacturing, long product life cycles and high reliability. In December 2024 it signed a preliminary memorandum of terms for up to $16 million under the CHIPS and Science Act for Minnesota modernization, in addition to $19 million in Minnesota incentives, and cannot predict when or if that funding will be received.